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NIVEUS PLANS TO SELL ITS STAKE IN KWV FOR R1.15bn

NIVEUS Investments said on Wednesday it plans to sell its 57.13% stake in wine and spirit maker, KWV Holdings, for an initial R1.15bn.

KWV sources wines and grapes from the viticultural regions of SA. In addition, it owns several brands such as Roodeberg and KWV Wines.

The deal, which is subject to the fulfillment of a few conditions, including the approval of the competition authorities, will be settled in cash.

About 50% of the amount will be paid in cash on the effective date of the deal, while the rest will be differed and settled in three equal cash instalments.

The differed payments will increase by 6% per annum.

Niveus said “the offer represents a return on investment that warrants acceptance”.

The operational assets of KWV will be acquired by New Rose 7 and Warshay Investments, associated with the Vasari group.

The Vasari group has significant experience in operating multinational spirits and beverage companies, Niveus said in a statement.

Source: BDLive- staff writer